EC President Ursula von der Leyen proposed a billion-euro "Rearmament Plan for Europe". She stressed that Europe's security is under real threat.
Ahead of the EU crisis summit on Ukraine, European Commission President Ursula von der Leyen presented a billion-euro "Rearmament Plan for Europe". It includes loosening borrowing rules as well as incentives to increase defense spending, von der Leyen said in Brussels. In her words, Europe could mobilize "almost 800 billion euros".
The head of the EC also pointed out that Europe's security is under real threat. "This is Europe's hour and we must deal with it", she said. "We are in an era of rearmament and Europe must be ready to increase its defense spending."
Just hours before Von der Leyen's declaration, the government of US President Donald Trump announced that it was temporarily suspending its aid to Ukraine - a few days after the scandal surrounding the visit to the White House by Ukrainian President Volodymyr Zelensky. After the spat between Zelensky and Trump, there has been increasing talk that Europe urgently needs to do more for its defense, ARD recalls.
Funds worth 150 billion euros
Von der Leyen's plan includes, among other things, the creation of a new fund worth 150 billion euros to increase both defense investments in the EU and military aid to Ukraine. The funds will be earmarked primarily for air and missile defense, artillery systems, drones and cybersecurity.
"It's about better and more joint spending," said Von der Leyen. This will allow member states to pool their research, make joint purchases, and at the same time increase support for Ukraine. It also plans to activate the derogation clause in the Stability and Growth Pact. It would allow member states to make new commitments on defense spending without fear of an EU deficit procedure.
EU countries must give their approval
Von der Leyen hopes that her proposal, together with private capital and additional funds from the European Investment Bank, could mobilise up to 800 billion euros for defense over a four-year period. She presented her plan just before an extraordinary summit on Ukraine scheduled for Thursday. There, European heads of state and government will also discuss the development opportunities for the European arms industry.
EU countries must vote on Von der Leyen's plan. Hungary and Slovakia have already spoken out against a joint declaration in favor of Ukraine. Hungarian Prime Minister Orban and Slovak Prime Minister Fico support Trump's course for a ceasefire in the war in Ukraine and are closer to the positions of Russian President Putin, ARD reports.